Market Watch - Electric Equipment

Today’s consumers want tools and equipment that are reliable and easy to use. Now that many electric-powered products perform much better than in the past, manufacturers are seeing an increase in demand for electric-powered lawn and garden equipment.

“We see it as a billion-dollar market and growing,” says Joe Ferris, product manager for outdoor products at Positec USA (Worx brand). “There are two major things driving demand. One is the green movement. The primary factor, though, is ease of use.”

Historically, those two factors have somewhat conflicted with one another. “Our research indicates that there is an increasing demand for electric and alternative energy products as part of an overall movement toward sustainability,” says Steve Meriam, manager, national sales and product development for Stihl Inc. “However, this is tempered by the performance needs of customers, as well as, in the case of corded products, the inconvenience of dragging an electrical cord around when doing yard work.”

Now that battery technology has evolved considerably, more consumers are looking to electric as a viable option. “Many consumers are willing to give it a chance because the price points are often lower than traditional gas products,” says Pam Everett, a product manager at Husqvarna. “When the performance is proven to be up to par, it gives credibility to obtaining a quality product at a value.”

GROWING NICHE

When you’re talking about electric lawn equipment, you’re not just talking about handheld tools anymore. In fact, both Ariens Company and Hustler Turf Equipment have even introduced electric zero-turn mowers in the past year.

Still, the majority of sales growth has occurred in the staple handheld categories. “We’ve seen growth specifically in the battery-powered segment for hedgetrimmers and saws,” Everett says. “There has also been some shift from gas- to electric-powered trimmers and blowers over the past two or three years.”

According to Meriam, this demand is being spurred primarily by the consumer’s desire for reduced emissions and environmental impact. There are also some convenience factors associated with electric-powered equipment:
• No gasoline storage
• Less maintenance relating to fuel issues, such as stale or poor-quality fuel
• Generally easier to start
• Lightweight and quiet

Benefits such as these appeal to a wide variety of consumers, which is why Ferris says he’s seeing demand grow on a widespread basis. “One of our strongest markets now is Charlotte,” he adds.

Still, as Meriam points out, there are definite hot pockets for electric-powered equipment. “Certain parts of the country—California, Oregon, Washington and New England—tend to lead the country in environmental initiatives,” he says. “Urban and suburban areas also show a greater demand for electrics. Predominantly, the target customer is a female with a small urban or suburban property to maintain.”

But the target customer is in a period of flux, Everett points out. While it has traditionally been the homeowner with a small yard of a quarter acre or less, homeowners with larger lot sizes are also taking an interest in electric-powered lawn equipment. And according to Meriam, you could eventually see electric equipment appealing to professional users.

The key is the battery technology, which Ferris says is twice as good as it was 10 years ago. “Keep in mind that voltage times amp hours gives you watt-hour performance, which tells you the size of your fuel tank, so to speak,” he explains. “Worx products feature a working time of roughly half an hour. Then, the lithium battery needs another half hour or so to charge back up.”

IDEAL FOR DEALER SHOWROOMS

You can’t get much simpler or more convenient than that, which begs the question: Is electric equipment a good fit for the more knowledgeable, service-oriented dealer network?